MANILA, Philippines – Diversified conglomerate San Miguel Corp. (SMC) and the group of tycoon Lucio Tan announced they would form a consortium to bid for the P17.5 billion expansion project of Mactan-Cebu international airport, the country’s second busiest gateway.
This brings them head-to-head against the country’s largest conglomerates — Metro Pacific Investments Corp. (MPIC), led by businessman Manuel V. Pangilinan, and JG Summit Holdings Inc, led by tycoon John Gokongwei — as well as partners Ayala and Aboitiz groups.
“The company and the group of Mr. Lucio Tan are forming a consortium with the intention of participating and jointly submitting a competitive bid for the Mactan-Cebu international airport expansion project under the PPP program of the government,” said San Miguel disclosed to the Philippine Stock Exchange (PSE) on Tuesday, March 26.
The two are partners in legacy carrier Philippine Airlines (PAL) after Tan’s Trustmark Holdings entered into a deal with SMC’s San Miguel Equity Investments Inc. in April 2012. San Miguel, the country’s biggest business group, now has a 49% stake in and controls the country’s oldest airline.
San Miguel and Tan’s Macroasia Corp. are among the firms that bought bid documents for the Cebu airport project, which the Aquino government wants to see completed by 2016.
Other companies that are interested in the Cebu airport include Megawide Construction Corp. and India’s GMR Infrastructure Limited, as well as Lopez-led First Philippine Holdings Corp., Henry Sy’s Premier Airport Group, Filinvest Development Corp. and Prime Power Holdings Corp.
Foreign firms such as Malaysia Airports Holdings Berhad, Samsung C&T Corp., SG&V Co., Changi Airports International, Macquarie Infrastructure and Real Assets (Singapore) Pte Ltd, and Aeroport de Lyon made inquiries on the project.
The current deadline for the submission of bids for the airport project has been moved to April 5.
The Mactan-Cebu International Airport is located in a 797-hectare property. It has a single 3,300-meter runway and a full-length taxiway and is bursting at the seams.
The expansion project involves the construction of a passenger terminal that has a capacity of 8 million passengers a year. The project also includes the operation and maintenance of the old and new facilities. – Rappler.com